Finance Minister Petrit Malaj presented the 2026 draft budget today. He said the plan aims to maintain macroeconomic and social balance. Moreover, it focuses on public investment and social priorities to ensure stability and long-term progress.

Malaj stated that next year’s planned spending will reach 886.7 billion lek. This increase not only reflects higher investment in priority sectors but also shows the government’s fiscal responsibility. Public investment will equal 6.5% of GDP. In addition, the government will implement strategic projects under the EU Western Balkans Growth Plan. These projects aim to turn Albania into a new regional development hub.

Education remains a top priority. Specifically, the draft allocates 89.8 billion lek, or 3.2% of GDP, which is an increase of 4.3 billion lek compared to 2025. For example, students from grades 1–9 will receive free textbooks. Furthermore, the budget provides special support for disadvantaged students, scholarships for children with special needs, and free transport for tens of thousands of students and teachers.

In the health sector, the budget allocates 81.2 billion lek, or 2.9% of GDP, up 4.9 billion lek from last year. It includes reimbursed prescriptions for 400,000 patients. Also, funding for oncology drugs will increase. Hospitals and regional health centers will undergo reconstruction. Moreover, the National Vaccination Program will cover 180,000 children and 280,000 adults.

Social protection will total 257.3 billion lek, or 9.2% of GDP, up 11.6 billion lek from 2025. This includes economic aid, disability support, unemployment benefits, baby bonuses, and compensation for former politically persecuted citizens.

Agriculture will receive 16.3 billion lek through subsidies, sovereign guarantees, soft loans, and VAT compensation. Consequently, about 15,000 farmers will benefit from support measures, while another 30,000 will benefit from the agricultural fuel scheme.

Defense funding will cover 2.12% of GDP in 2026. This aligns with Albania’s NATO commitment to reach 3.5% of GDP by 2035. In comparison with last year, defense funding rises by 10.2 billion lek.

Infrastructure and energy spending will reach 2.8% of GDP. Key projects include roads, railways, water supply, sewage systems, and the new Durrës port at Porto Romano. Specifically, highway expansion, railway rehabilitation, and improvements to drinking water services will be prioritized.

Justice and public order will receive 26.2 billion lek, or 2.1% of GDP. The funds aim to improve prisons and strengthen the justice system.

The local government budget will reach 97.7 billion lek, up 9% from 2025. According to Malaj, this proves decentralization is real. Furthermore, unconditional transfers to municipalities will rise by 6.5% on average, and transfers to counties will rise by 4.1%. These increases will help implement projects more efficiently and strengthen local governance.

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